KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Key Takeaway:
China’s legislature is reviewing its first foreign trade law revision in 21 years, aimed at bolstering legal authority for countermeasures in escalating trade conflicts. The update signals Beijing’s readiness to deploy a wider toolkit — from trade bans to supply-chain support — as global tariff barriers intensify.
Stronger Countermeasure Powers
The draft revision would allow restrictions on foreign individuals or firms deemed a threat to China’s sovereignty and security. It also proposes a “trade adjustment assistance” system to cushion supply-chain disruptions. Analysts note that open-ended language could formalize tools China has already used, such as export controls and investigations into foreign companies.
Rising Trade Frictions
The move comes as trade tensions flare globally. Washington and Beijing extended a 90-day tariff truce in August, but frictions remain after the U.S. imposed sweeping duties on Chinese goods. Separately, Beijing introduced anti-dumping duties on EU pork last week in retaliation for Brussels’ tariffs on Chinese EVs. Mexico is also weighing measures targeting Chinese imports.
Economic Backdrop
China’s export growth slowed to a six-month low in August, reflecting fading gains from the U.S. tariff truce. With global trade barriers tightening, policymakers are under pressure to support exporters while signaling resolve against external headwinds.
Investor Take
The legal overhaul underscores Beijing’s intent to institutionalize counter-tariff measures. For investors, this raises the risk of more frequent retaliatory trade actions, particularly in sensitive sectors such as autos, tech, and agriculture. Export-oriented Chinese equities may remain volatile, while supply-chain diversification plays — across ASEAN, India, and Mexico — could gain traction.
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